As per amendment dated 22.9.1997 in the Act, both the employees and employers contribute to the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if any, payable to employees per month. The rate of contribution is 10% in case of the following establishments:

i.Any covered establishment with less than 20 employees;

ii.Any sick industrial company as defined in clause (O) of sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 and which has been declared as such by the Board for Industrial and Financial Reconstructions;

iii.Any establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire networth; and

NOTE: A member, on his request, is allowed to contribute more than the above rate subject to the condition that the employer shall not be under any obligation to pay any contribution over and above the contribution payable under the provisions of the Act.

EPF INTEREST RATE

The rate of interest is fixed by the Central Government in consultation with the Central Board of Trustees, Employees’ Provident Fund every year during March/April. The interest is credited to the members account on monthly running balance with effect from the last day in each year. The rate of interest for the year 2006-07 has been notified as 8.5%.

BENEFITS

A) A member of the Provident Fund can withdraw full amount at the credit in the fund on retirement from service after attaining the age of 55 years. Full amount in Provident Fund can also be withdrawn by the member under the following circumstances :

(i) A member who has not attained the age of 55 years at the time of termination of service.

(ii) A member is retired on account of permanent and total disablement due to bodily or mental infirmity.

(iii) On migration from India for permanent settlement abroad or for taking employment abroad.

(iv) In case of mass or individual retrenchment.

B) In case of the following contingencies , the payment of provident fund be made after completing a continuous period of not less than two months immediately preceding the date on which the application for withdrawal is made by the member:

i) where employees of close establishments are transferred to other establishment , which is not covered under the Act;

ii) where a member is discharged and is given retrenchment compensation under the Industrial dispute Act 1947.

WITHDRAWAL BEFORE RETIREMENT

A member can withdraw upto 90% of the amount of provident fund at credit after attaining the age of 54 years or within one year before actual retirement on superannuation whichever is later. Claim application in form 19 may be submitted to the concerned Provident Fund Office.

PARTIAL WITHDRAWAL / ADVANCES

A member of provident fund is allowed non – refundable advances for the following contingencies:

(i) For acquiring immovable property

(ii) Advances in special cases such as lock out in factory / establishment ; where a member has challenged the retrenchment / dismissal by the employer in a Court of Law.

(iii) For treatment of illness.

(iv) For marriages or post matriculation education of children.

(v) Under abnormal conditions such as damage to movable or immovable property by calamity of exceptional nature.

(vi) Financing of member’ s Life Insurance Policy

The partial withdrawals are allowed on completion of minimum of 5 years of membership of the fund and such other certain conditions for house building and 7 years of membership in other cases. Claim applications in form 31 may be submitted to the concerned Provident Fund Office.

ACCUMULATIONS OF A DECEASED MEMBER

Amount of provident fund at the credit of the deceased member is payable to nominees/ legal heirs.

Claim application in form 20 may be submitted to the concerned Provident Fund Office.

TRANSFER OF PROVIDENT FUND ACCOUNT

Transfer of provident fund account from one region to other, from Exempted Provident Fund Trust to Unexempted Fund in a region and vice- versa can be done as per Scheme. Transfer Application in Form 13 may be submitted to the concerned Provident Fund Office.

NOMINATION

The member of Provident Fund shall make a declaration in Form 2, a nomination conferring the right to receive the amount that may stand to the credit in the fund in the event of death. The member may furnish the particulars concerning himself and his family. These particulars furnished by the member of Provident Fund in Form 2 will help the organization in building up the data bank for use in the event of death of the member.

ANNUAL STATEMENT OF ACCOUNTS

As soon as possible and after the close of each period of currency of contribution, annual statement of accounts will be sent to each member through employer of the factory or other establishment where the member was not employed. The statement of accounts in the fund will show the opening balance at beginning of the period, amount contributed during the year , the total amount of interest credited at the end of the period or any withdrawal during the period and the closing balance at the end of the period. Members should satisfy themselves as to the correctness of the annual statement of accounts and any error should be brought through employer to the notice of the concerned Provident Fund Office within 6 months of the receipt of the statement.